Iran’s Military Budget Runs on Crude Oil

Nearly half of Iran’s military budget this year will be paid not in cash, but in crude oil, a new analysis by Iran Open Data (IOD) shows.

Iran’s 2025 national budget allocates approximately €20.4 billion (around $23.4 billion) to military and security institutions. Notably, about 47% of this funding is not in cash, but rather provided through special crude oil quotas.

Why it matters

These oil allocations provide Iran’s military leadership — especially the sanctioned Islamic Revolutionary Guard Corps (IRGC) — with a less transparent channel for financing projects that are only vaguely outlined in the national budget.

The IRGC, designated as a terrorist organization by the United States, now controls a significant share of Iran’s sanctioned oil exports, much of which is sold to China at steep discounts.

By the numbers

- 53% of Iran’s military budget is allocated in cash.
- 47% is paid via crude oil, which military bodies sell to fund classified security and defense projects.
- About €3.8 billion (approximately $4.3 billion) worth of oil has been earmarked for two secretive initiatives called "Shahid Nazaran" and "Shahid Chamran." No official information about the nature or leadership of these projects has been disclosed.

Mysterious new project

The budget also introduces a new classified project called "Shahid Raisi," reportedly named after former President Ebrahim Raisi, who was killed in a helicopter crash in 2024.
The project is funded with €490 million (about $560 million) worth of crude oil.

No prior record of this project exists, and no official information has been released about its objectives, leadership, or scope. It is categorized under the broader "Shahid Bagheri" program and is the most expensive individual military project listed in the 2025 budget.

Between the lines

Iran Open Data found that about one-third of the official military budget is allocated directly to the IRGC. Another third funds the Armed Forces Social Security Organization, covering pensions and salaries. About 18% is allocated to Iran’s police force.

An interactive chart released by Iran Open Data allows users to explore detailed breakdowns of the military budget and project allocations.

On a Different Note:
Iran’s Military Budget: A Quarter of the Nation’s Finances Amid Economic Challenges
Iran’s Trade Pivot: China Rises, Europe and Japan Fade
Iran’s Energy Crisis: Rising Consumption and Inefficiency